Screening Tenants: What Matters Most

As you screen your tenants, you might be wondering what matters most. You look at a lot of different information about just one person, but are they all equally important or should you weigh some heavily than others? Here are the criteria that matter most when screening tenants.

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Rental History

First, you need to get a rental history report and thoroughly examine it. Many key, important factors separate a good tenant from a poor one which you can understand by rental history alone. This includes if they have previously rented, those addresses, any past evictions, and how they acted as a tenant, including whether payments were on time and if they caused any damages. All of this is vital information when screening tenants as this information is an indicator of the type of tenant they will be within you.

If they have any past evictions, this is the type of candidate you will likely want to avoid, however, you should still look into the case as not everything is black and white. Consistent late payments are another red flag, as you want your payments on time to you. Ideally, you want a tenant whose rental history includes nothing major like this. By screening tenants and their rental history, you get a good sense of the tenants they were and who they will be if living in your apartment.

Employment History

Employment history also matters when screening tenants. If they seem to have a history of job hopping, this may be a tenant you want to avoid. While some professions may require plenty of job hopping from one project to the next, you ideally want someone who is consistent and will pay rent on time. If they have large gaps in their employment history, this may be another thing to deter you from approving them.

Again, you should bring up these concerns in employment history with the prospective tenants rather than immediately dismissing them. The large gap may be due to the tough job market and any jobs with a short work period may be due to lay-offs.

Income

Closely related to employment history is the average income of the potential tenant. They should make enough that you can trust they will pay their rent on time and leave some to spare. You should not rent to a tenant who will be living with an extremely high percentage of their paycheck going to rent. A good number to stick to is 30%. The rent should be roughly 30% of their income. Keep in mind their employment history. Maybe their pay is good now, but do you trust it to last throughout the duration of their lease? While separate categories, they rely on each other and both matter to your screening.

Credit Score

Your prospective tenants’ credit score is another important aspect to screen and consider. If they have a high credit score, that means they are good at paying off any credit cards, loans, as well as their rent. If they have a low credit score, it shows the opposite. Ideally, you want someone with their credit score a little higher, or at least average for their age and location. A younger individual may have a lower credit score, but only because their credit age is much younger and they have not had time to develop themselves financially.

Attitude

If you are showing the potential renters around their property, you need to pay attention to their personality and attitude towards not only you but the property itself. You always want open and clear communication and mutual respect with your tenants. This matters very much so that both of you can get what you want out of the property and resolve any problems that arise. If they are dismissive of you, this professional relationship will not work. You should also keep an eye out to see if they listen to you when explaining the lease and rules. A rude attitude is a big red flag and you should look for someone more engaged in touring the property.

It is also possible that potential renters are destructive to the property during their tour. While accidents happen, they may be deliberate with it and drive on the grass, scratch the walls, or worse. You want to rent to a tenant who respects both you and the rental property.

If you happen to get a gut feeling, go with it! Sometimes you know best, even if you cannot pinpoint the exact reason. You should feel good about the tenant you are renting to.

Create Your Ideal Criteria

Before you start screening tenants, decide which on this list matters most to you. Do you want to rent to clients with high credit scores, or do you want to give lower scores a chance to improve? Do you want someone with an established rental history, or are you willing to be someone’s first? By deciding the kind of tenant and criteria you are looking for, you can weigh each of these categories separately to help find your ideal tenant when you get to the screening process.